Amid B.C.'s tariff and trade-challenges, short-term rental rules need to change, group says

Global News

27-05-2025

The B.C. Real Estate Association is calling for changing to the province's short-term rental restrictions ahead of the busy summer travel season.
The organization said that amid B.C.'s current tariff and trade-challenged environment, along with the provincial government's public advisory to find alternative places to visit this summer, provincial priorities need to be adapted.
'While affordable housing is a critical provincial issue, so are provincial economic wellbeing and the health of our tourism sector,' the organization said in a statement.
'When the Short-Term Rental Accommodations Act and its accompanying regulations were put into force, the province was extremely focused on creating additional housing by any lever possible. Since its implementation, however, short-term rental (STR) legislation has caused a series of economic challenges across the province that need to be addressed.'
The real estate association said that while the need for housing is great, long-term rentals can be a vital piece of the housing continuum and they want to see a few changes made.
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The first would be to return zoning autonomy to local governments.
'As it stands, local governments can opt out of the principal residence rule in the legislation if they provide adequate written notice and can prove their vacancy rate has been three per cent or over for two consecutive years,' the organization said in a statement.
'While this formula may work for some local governments, the provision has proven to be too restrictive for many communities.'
It cited Parksville as an example, which has not experienced a three-per cent vacancy rate in more than 20 years and so would not have qualified for the exemption.
The city was eventually granted a partial exemption.
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'Prior to the implementation of these rules, many local governments had areas and buildings zoned specifically for STR use,' the organization said.
'This allowed communities to balance their need for tourist accommodation with the need for long-term rental units.'
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Second, the real estate association wants to expand the Strata Hotel and Fractional Ownership Exemption.
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The Short-Term Rental Accommodations Act provides an exemption from the principal residence requirement for strata hotels and fractional interest property.
An exemption exists for these property types, provided the property owner is unable to use their property as a principal residence due to a mandatory provision in a rental pool, rental management agreement, or fractional ownership agreement.
The real estate association said these regulations, which were recently amended to include other criteria, are confusing and currently exclude some strata hotels from acquiring exemptions.
'In order to accommodate tourists as well as owners who may wish to live in high-tourism communities on a part-time basis, a high number of unique ownership types such as strata hotels and fractional ownership properties exist across the Interior,' the organization said.
'These properties were designed to facilitate such short-term occupancy needs and are often ill-suited for long-term tenancy. While long-term occupancy is possible in some cases, the primary purpose of these buildings remains focused on tourism and short-term tenancy.'
Third, the real estate association wants exemptions put in place for areas that are close to health care centres.
They said that due to people needing to travel across B.C. for medical reasons, long stays in hotels may not always be viable or appropriate.
For the North and Interior especially, the organization said an exemption should be made for STR units close to major health care centres and hospitals so that the region's health care needs can be met.
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Finally, the real estate association said it would like exemptions for the television and film sector to incentivize projects to continue operations across the province.
'Current STR legislation has hindered the TV and film sector's ability to house the sizeable transient cast and crew on these projects,' the organization said in a statement.
'It has created an over-reliance on already challenged hotel room inventories across the province, further lowering year-round vacancy rates, increasing consumer competition, and driving up average hotel costs.'
Trevor Hargreaves, the senior vice-president of government relations, marketing and communications for the BCREA said the organization knows the government has a challenging job of balancing housing policy with overall provincial economic wellbeing.
'Some key changes to current short-term rental legislation would help many people and communities across the province while maintaining the spirit of the original policy,' he said.
B.C. Premier David Eby has hinted the STR rules won't be in place forever, but the housing minister maintains they are still needed right now.
'There are already exemptions put in place for communities that reach a high vacancy rate, to be able to get relief from the measures we've put in place,' Minister Ravi Kahlon said.
'By the way, those measures are working, we're seeing rents come down, we're seeing more housing opportunities come available for communities, and that's always been our priority.'